Federal Judge Blocks Biden’s Medical Debt Credit Reporting Rule

In a significant ruling on July 11, 2025, U.S. District Judge Sean Jordan of the Eastern District of Texas struck down a Biden administration rule designed to remove medical debt from consumer credit reports. The Consumer Financial Protection Bureau’s (CFPB) January 2025 regulation aimed to erase nearly $50 billion in medical debt affecting about 15 million Americans.

Judge Jordan ruled that the CFPB exceeded its authority under the Fair Credit Reporting Act (FCRA), which explicitly allows medical debt to be reported on credit files. This decision means that medical debt will continue to impact consumers’ credit scores, affecting their ability to obtain loans and favorable interest rates.

Supporters of the rule argued it would have improved credit access for millions struggling with medical bills, while opponents maintained that accurate credit reporting is essential for lenders and healthcare providers to assess creditworthiness properly.

The Biden administration expressed disappointment but indicated it will explore alternative ways to help consumers manage medical debt. Consumer advocates encourage individuals to monitor their credit reports closely and seek assistance if medical debt affects their financial health.

This ruling highlights ongoing debates about the balance between consumer protection and regulatory authority, with broader implications for credit reporting practices nationwide.